U.S. Pat. No. 3,816,969 discloses a fully automatic article wrapping machine designed to utilize shrink film. The apparatus of the present invention utilizes some of the features of the apparatus shown in said patent. However, in many other particulars, the apparatus is materially changed and new apparatus and relationships are utilized to stretch the film in the course of wrapping it about the article. The resultant packages have a neatly stretched attractive film wrapper with enhanced appearance, and it is not necessary to pass the package through a heated shrink tunnel.